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CNX Resources To Buy Remaining Stake In CNX Midstream In $357 Mln Stock Deal

CNX Resources Corp. (CNX) announced Monday an agreement to buy all stake in CNX Midstream Partners LP (CNXM) that it does not already own. The share purchase is in exchange for CNX stock valued at approximately $357 million.

Under the merger deal, CNX will acquire the remaining around 42.1 million units of CNX Midstream at a fixed exchange ratio of 0.88 shares of CNX stock for each publicly held unit of CNX Midstream. It represents a 15 percent premium to the average exchange ratio during the 30 trading days ended July 24.

CNX Midstream common units will no longer be publicly traded after the transaction.

In aggregate, CNX will issue approximately 37 million shares in connection with the proposed deal, representing approximately 17 percent of the total shares outstanding of the pro forma combined entity.

Subject to customary approvals and conditions, the transaction is expected to close in the fourth quarter of 2020.

Don Rush, CFO, said, "Following the completion of the transaction, CNX is expected to be the lowest cost producer in the Appalachian Basin, with increased operational flexibility and basin leading operational metrics."

Further, the Board of Directors of CNX Midstream GP LLC, which is the general partner of the Partnership, has declared a cash distribution of $0.50 per unit with respect to the second quarter of 2020.

The distribution will be made on August 14 to unitholders of record as of the close of business on August 7.

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